california energy commission lng’s role for expanding natural gas supplies and update on west...
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California Energy Commission
LNG’s Role for Expanding Natural Gas Supplies and Update on West Coast Projects
Presented to West Coast PTTC Workshop
Valencia, CaliforniaSeptember 21, 2006
Pat Perez, Manager, Special Projects OfficeCalifornia Energy [email protected]
(916) 654-4527
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California Energy Commission
Presentation Topics
California Economy-Energy Relationship
State of California’s Energy PolicyNatural Gas and Supply OutlookStatus of West Coast LNG ProjectsLNG Interagency Working GroupLNG Permitting
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California Energy Commission
The “Nation State” of California 6th largest economy of the world 5th largest consumer of energy in the world Consumes 2% of the world’s natural gas
production Average daily natural gas demand: 6 billion
cubic feet (10 billion cubic feet per day in winter)
Population expected to grow from 36 million now to 45 million by 2025
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California Energy Commission
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California Energy Commission
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California Energy Commission
California’s Natural Gas Situation
California imports 87% of its natural gas U.S. and Canadian sources expected to
decline in the future California demand expected to grow LNG provides another source of natural gas Delivery of gas from a West Coast terminal
could hedge against supply/price problems in rest of country (e.g., hurricanes)
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California Energy Commission
Interstate Pipelines Serving California
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California Energy Commission
Natural Gas Pipelines
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California Energy Commission
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California Energy Commission
California’s Projected Natural Gas DemandCalifornia's Natural Gas Demand
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Year
Mill
ion
Cu
bic
Fee
t P
er D
ayPowerGeneration
IndustrialDemand
CommercialDemand
ResidentialDemand
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California Energy Commission
Why Consider LNG?
California is connected to U.S. NG market
U.S. NG supply not keeping up with demand
NG prices are rising very rapidlyCalifornia imports 87% of its supply
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California Energy Commission
LNG Proposals on the West Coast (that would provide California with LNG)
•)
• California• Cabrillo Deepwater Port• Clearwater Port• Long Beach• Ocean Way Terminal
• Mexico• Terminal GNL Mar Adentro de Baja California• Moss-Maritime Project• Energia Costa Azul LNG Facility (under
construction)
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California Energy Commission
A West Coast LNG Import Terminal would enable California to access
Pacific Rim supplies
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California Energy Commission
Potential Value to California
LNG provides significant economic benefit to California
Potential overall price reduction Supply diversity Additional import capacity
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California Energy Commission
West Coast LNG ProjectsWest Coast LNG Projects
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California Energy Commission
Cabrillo Deepwater Port LNG Facility
• California Location: 14 miles off the coast of
Ventura County. • Owner: BHP Biliton
• Capacity: 1.5 Bcfd
• Status: BHP Biliton is in the process of responding to comments made to the revised draft
EIS/EIR. The final EIS/EIR is pending.
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California Energy Commission
Clearwater Port LNG Project• California Location: 12.6 miles
offshore of the City of Oxnard, Ventura
County in the Santa Barbara Channel.
• Owner: NorthernStar Natural Gas Inc.
• Capacity: 1.4 Bcfd
• Status: Clearwater Port filed the Updated Deepwater Port Application on 7/13/06.
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California Energy Commission
Long Beach LNG Facility• California Location: Pier T, Berth
126, on Terminal Island in the Port of Long Beach, Los Angeles County.
• Owner: Sound Energy Solutions (SES), a subsidiary of Mitsubishi Corporation
• Capacity: 1.0 Bcfd• Status: A final EIS/EIR is expected to be released
in November 2006.
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California Energy Commission
Ocean Way LNG Terminal
• California Location: located in the Pacific Ocean about
22 miles south of Malibu, California.
• Owner: Woodside Energy, Inc. • Capacity: 800 Mcfd
• Status: Woodside Natural Gas submitted the Deepwater Port Application to U.S. Coast Guard and City of Los Angeles on 08/18/06.
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California Energy Commission
Terminal GNL Mar Aentro de Baja California
• Mexico Location: located
8 miles off the coast of Tijuana, Baja
California.
• Owner: ChevronTexaco • Capacity: 1.4 Bcfd • Status: Front end engineering and design work begun in March 2004 is continuing and a final investment decision is expected in 2006 followed by a timetable on the first receipt of gas.
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California Energy Commission
Moss-Maritime Project
• Mexico Location: Offshore facility 5.3 miles off the coast of Rosarito, Baja
California. • Owner: Moss-Maritime. Moss affiliate in
Mexico is Terminales y Almacenes Maritimos de Mexico, S.A. de C.V. (TAMMSA).
• Capacity: 297 Mcfd• Status: Mexico’s environmental agency
approved the project. Other permits are pending.
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California Energy Commission
Energia Costa Azul LNG Facility
• Mexico Location: 14 miles north of Ensenada, on the Costa Azul plateau.
• Owner: Sempra Energy LNG Corporation • Capacity: 1.3 Bcfd• Status: Known court challenges have been
resolved. This project has received all its permits and is under construction. Commercial operation is expected early 2008.
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California Energy Commission
Kitimat LNG Facility• Canada Location: Bish Cove near the Port of Kitimat,
on Tidewater Douglas Channel.
• Owner: Galveston LNG Inc.
• Capacity: 1.0 Bcfd
• Status: Kitimat LNG Terminal received its Provincial Environmental Assessment Certificate on
June 6, 2006 and a Federal Environmental Assessment permit is imminent.
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California Energy Commission
WestPac LNG Facility
• Canada Location: Ridley Island, British Columbia.
• Owner: WestPac Terminals, Inc.
• Capacity: 130 Mcfd
• Status: On June 6, 2006 Westpac filed its official Project Description with the Prince Rupert Port Authority, formally beginning the regulatory review and environmental assessment process for the project.
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California Energy Commission
Port Westward LNG Facility
• Oregon Location: Adjacent to Port of St. Helens along the Columbia River
about seven miles from Clatskanie, Oregon.
• Owner: Port Westward LNG LLC
• Capacity: 700 Mcfd
• Status: The port has approved a 99 year lease agreement. However the project still needs permits and financing.
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California Energy Commission
Northern Star LNG Terminal• Oregon Location: Bradwood,
Oregon, on the southern shore of the Columbia River approximately 38 miles from the Pacific shoreline.
• Owner: Northern Star Natural Gas LLC
• Capacity: 1.3 Bfcd• Status: Bradwood Landing LLC’s application has been formally noticed by the FERC. FERC’s official public notice now starts the “clock ticking” on FERC’s comprehensive review process.
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California Energy Commission
Skipanon LNG Facility
• Oregon Location: on 96 acres on Warrenton’s Skipanon Peninsula, at the mouth of the Skipanon River.
• Owner: Calpine Corporation
• Capacity: 1.0 Bcfd
• Status: The Port of Astoria agrees to lease 96 acres to Calpine. However Calpine has not yet started the application process.
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California Energy Commission
Jordan Cove Energy Project• Oregon Location: on the
bay side of the North Spit of Coos Bay, Oregon, about 6 miles north of the entrance of the bay.
• Owner: Energy Projects Development, LLC
• Capacity: 1.0 Bcfd
• Status: FERC and the US Coast Guard have scheduled a series of public meetings
designed to provide the opportunity for public input on the scope of the agencies’ environmental assessments. 27
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California Energy Commission
LNG Interagency Working Group
Mission Establish close communication among and
support for agencies potentially involved in the permitting process of any LNG facility in California.
Working group has met monthly since September 2003.
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California Energy Commission
LNG Interagency Working Group
Goals: Identify permitting responsibilities for various aspects of an LNG project Identify potential resources available to the State that can be used to
assist the lead and responsible agencies that review an LNG facility application
Establish a support network to ensure all affected agencies can operate efficiently and complete their work in a timely manner
Provide clear guidance to potential developers on the State’s LNG permitting process
Serve as an information resource on LNG by offering workshops to agencies or the public and maintaining a website on LNG (http://www.energy.ca.gov/lng/index.html)
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California Energy Commission
LNG Interagency Working GroupMembers include federal, state and local agencies: Federal
U.S. Air Force U.S. Army Corps of Engineers U.S. Coast Guard U.S. Environmental Protection Agency U.S. Marine Corps U.S. Navy
State Air Resources Board Coastal Commission Coastal Conservancy Department of Fish & Game/Office of Spill Prevention & Response
(continued)
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California Energy Commission
LNG Interagency Working Group
State (continued) Department of General Services Electricity Oversight Board Energy Commission Governor’s Office of Emergency Services Governor’s Office of Homeland Security Office of Planning and Research Public Utilities Commission San Francisco Bay Conservation and Development Commission State Lands Commission
Local City of Oxnard County of Ventura Port of Long Beach
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California Energy Commission
Different Review Processes for Offshore and Onshore Projects
Different federal laws and standards Different federal agency leads Different state agency leads Different timelines for review Different role for Governor Different approaches for modeling risk
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California Energy Commission
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California Energy Commission
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California Energy Commission
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California Energy Commission
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California Energy Commission
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